"We are coordinating our efforts with (Egyptian) Prime Minister Ahmed Nazif and the relevant ministers in Egypt in order to enable Egyptian electricity and gas to reach Lebanon as soon as possible," Siniora said during a joint news conference with Nazif in Alexandria.
Lebanon suffers daily blackouts . Despite the fact that electricity charges in Lebanon are some of the highest in the world the Electricite du Liban (EDL), the only utility company in Lebanon is subsidized by the Lebanese government .
The main reason behind the subsidy is the bill collection. Bill collection in Lebanon is about 50 % . The other main problems are the electricity theft and corruption
The main reason behind the blackouts is the power shortage . The current production in Lebanon is about 1500 MW , while the country needs about 2300 MW .
The other reason behind the blackout is the outdated equipment of EDL and the poor maintenance . According to Alain Tabourian , the new minister of energy a $2 billion investment is required to repair the old power plants and build new ones to meet electricity demands that reach 2300MW. Lebanon, which is one of the most heavily indebted nation on GNP basis does not have this kind of money . The only solution is privatization . But which investor is willing to buy a company that cannot collect its bills ?
According to PM Siniora the energy ministers from both countries within the next couple of days to draft an agreement
According to Tabourian Lebanon will be importing in this deal with Egypt 200 MW of electricity, which must come through Syria. This is therefore a partial solution , which could reduce the blackouts but not eliminate them
Importing natural gas could also offer a partial solution to Lebanon’s electricity woes. In Lebanon, two out of the four major power plants were originally built as natural gas plants, and to bring the gas to these plants, the Arab Gas Pipeline (AGP) was extended to Lebanon via Jordan and Syria, becoming operational by 2005.
Photo: Egypt's President Hosni Mubarak (C) talks with Lebanon's Prime Minister Fouad Siniora (R) and Egypt's Prime Minister Ahmed Nazif at Borg El-Arab airport in Alexandria August 16, 2008.
Tags: Economy, Egypt, electricity, gas, Lebanon, Privatization, Syria, Ya Libnan
